areas where the funding is available. and you may see an adjustment in that department before year-end. at the nine-month mark we'll have a better indication as to whether or not the city attorney will require a general fund supplemental. the rest of the departments, the fire department we believe will be able to close that deficit. the public defender, however, we do not believe that the public defender will be able to close his deficit and this is entirely in the area of sail. -- salaries. as was talked about last week, there are a number of vacancies that the public defender has that the controller's office is now holding vacant because of the existing deficit. so, unless there is a supplemental appropriation of additional general fund money to the public defenders office, we in the controller's office

have the authority and responsibility to hold any additional spending until there is such policy from the mayor and the board of supervisors. emergency management will likely be able to close their doctor this deficit with holding positions vacant and some of their operating expenses. so, taken together, all these net shortfall departments represent a shortage of about $51.3 million. and then the bottom half of that table identifies the surplus department. and, so, the human services agency has seen a significant reduction in their expenses in the current year. and then beyond that, they will be provided with additional state realignment money that

goes toward caseload growth. what the state usually does in the middle of every year is it takes a look at the county that have under spent and other counties that have increased their caseloads. and in the instance in katrina voss, again, there is going to be additional money that will be allocated * to the social services department that will free up general fund. so, we are estimating a surplus of $19 million that will cover, you know, a significant part of the deficits at the top half of that table. city planning, as you know, they have a significant amount of additional fee revenue and they have introduced a supplemental appropriation to spend a portion of that, and that is assumed in this projection. recreation and park has additional revenue and as required by the charter, any surpluses in revenue or

expenditure savings gets continued within their own fund balance to use for next fiscal year. and, so, that's what we're assuming for the recreation and park department. the assessor-recorder has -- >> growth within recollect he and park, could that be attributed to, do you know? * rec and park >> i believe it's related to the stadium revenues and also the success of some of our football activities in the current year. surplus of 3.8 million -- due to 2.8 million in surplus garage revenue and a million of additional candlestick concession revenue. we had one of our garages that was closed for a period of time. so, people started using a recreation and park garage and, so, that was a shift of revenue from the mta really to the recreation and park department.

and the assessor-recorder has additional recording fees and the controller's office is holdling back on some of the audit work so that a saving can help support next year's budget. and then the remainder of the departments represent a small surplus of 2.4 million. so, we have roughly $32 million of surplus departments to offset 51 million of deficit departments for a net operation of negative 18.9 million. supplement at appropriations as you see, city planning and domestic violence services [speaker not understood] represents 6.4 million. and although our supplemental appropriations anticipated, we believe the -- up to the 45.9 million, we don't think it will be that high for the health

department, up to about 900,000 for the sheriff, and 800,000 for the public defender. so, some uncertainties continue to exist in these projections and i just want to note those. on the impact of the dissolution of the redevelopment agency, those final figures are still not been adjudicated by the state and we are not making any assumptions that we would lose any additional redevelopment dollars as part of this estimate. property tax appeals may require that we revise some of our estimates on refunds. at this point we will take a look over the next three months to see whether results of some of the property tax appeals in some instances that increases property tax or other indents that reduces it. the potential fluctuation of

general tax revenue, we may see a few more boom months of property transfer tax, or we may not. and, so, it really will depend on a month-to-month basis. the potential liability with litigation, we have two large cases that we continue to work on as a city. one is a disabled access case and the other is the online travel companies. and either one of those cases it was decided unfavorable to the city and county would impact our revenue projections and our surplus projections. and, so, the board of supervisors will be briefed about those particular cases in the future. and then the federal budget issues, the extent to which congress acts or doesn't act on across the board cuts is going to make a difference to us. probably will not be felt for a number of months and may not be felt until the next fiscal

year, but those uncertainties have to be noted in terms of our estimates. >> so, ms. zamuda, i don't know if this is an appropriate question for you or to ms. howard. the threat of sequestration at the federal level, have we done some work on thinking about what that impact might be to the city? >> supervisor, we have. it's an an insignificant number. it's approximately $30 million of impact. some of that is on the general fund side, some of it is not. and i think we all will need to be watching closely to see what the federal government does. and then make some determinations about to what degree the city can afford to backfill those kinds of programs. >> okay. and to ms. zamuda's comments or earlier, those would be anticipated be felt in the next fiscal year, though, if they do happen? >> i think that's yet to be seen. you know, we know that federal

agencies are already slowing down their spending and anticipation of the sequester. what that likely means is that they will try to minimize the current year effects on funding that they've already given out, but they're just not giving out more funding today. and, so, that would tend to support what the deputy controller said. >> thank you. >> so, other funds, highlights in other funds, we do concentrate on the general fund, perhaps too much. and this highlights, supervisor, some of the other funds we are constantly monitoring and reporting on. building inspection has really quite a large fund balance. you will see that department increasing their staffing in order to expedite some of the inspections that need to be done. the children's fund has a

surplus estimated at $7.3 million of a fund balance that can be used to be appropriated in the next fiscal year's budget. the convention facilities fund has a fund balance estimated at 20 million. the library preservation fund has a significant amount of money and you may be seeing some expansion in hours or other spending within the library. the local courthouse fund, we have been monitoring this over the last number of years. as the debt that we payoff toward the courthouse construction fund is retired. we will close that deficit. and, so, that deficit will be closed. it's a cumulative amount that is reducing every year and we estimate, i think, in three years that should be cleared. the open space fund will end a year with about $3 million, 3.6

within dt. and a negative 1.1 for central shops. what that means for central shops is unless they reduce their costs, that deficit then will be built into their rates to the departments for maintenance of vehicles in next fiscal year. and then finally some of the large enterprise departments, the airport operating fund has a healthy deficit of about $82 million -- excuse me, a surplus, fund balance of $82 million. mta, 57 million, port 30, and the three funds within the puc, hetch hetchy wastewater and the water operating fund are reported here. so, in summary, the local tax revenue is a primary driver of our net good condition. the five-year financial plan and the nine-month report will

further inform the mayor and the board of supervisors of any changes that are anticipated. so, as ms. howard reported, march 1st we will provide all of the projections, the revenue projections in the five-year plan and the mayor's office will make some recommendations related to that. and then the nine-month report generally comes out in early may. significant uncertainty remains for state and federal impacts, as you know, and the mayor's office has already responded that the next two years' deficits will come down commensurate with the overall estimate of a surplus by year-end. one other item, there was some discussion about the reserve and we do have a table on page 18 of the full report that identifies the level of

reserves, both what it started out in the current year and what we're projecting the balance to be by year-end. and, so, the general re serve, again, we're estimating we're going to use it all to fund the supplemental appropriations. so, there won't be anything left. and next year the mayor's office will need to appropriate that and a little bit more to be consistent with our financial policy. the budget savings incentive fund will project an ending balance of 19 million. we will be depositing into that fund and then withdrawing from that fund. the rec-park reserve is in here. they have 4.9 funding, and 3.8 is projected in the sick-month report with some withdrawals for capital for an ending balance of 7 million that will

be available for rec park next year. the rainy day reserve, the withdrawal as you know is from the school district and that is unlikely that the city will, in our lifetime, be able to withdraw from that reserve. * six the rainy day one time reserve will be available, however. the budget stabilization reserve, supervisor avalos, so, we had 74 million. we estimate we'll deposit another 20 million as a result of this news. so, we will have almost 95 million by year-end. and the salary and benefits reserve of 20 million, we do estimate that we'll be using all of that this year, but it will be sufficient. and the state revenue reserve is estimated to be used partly with the supplemental appropriation that you've already considered. and then probably for the health department. >> thank you. just a question on the budget

stabilization reserve. under what conditions are we able to withdraw and utilize those funds? it has to be after several years of -- >> of positive revenue news. and then when we do use it, it's only a portion of the deficit. the revenue deficit. we had suggested that the controller provide a more broad summary of all of the reserves and the set asides when the committee goes to five members. [speaker not understood] the kind of rules and policies regarding all of these reserves. since the financial policies were in effect a couple of years ago, we really have made a tremendous amount of progress in establishing reserves that have been looked upon very favorably by the rating agencies and though more importantly we will have money available in the next downturn

that will keep us on a more steady footing in terms of how much money and it will prevent big cuts and layoffs. so, i'm available to answer any additional questions and we will definitely be with you on a weekly basis and provide you with updates as they occur. >> thank you. colleagues, any further questions? thank you very much, ms. zamuda. and ms. howard, i know you spoke earlier. we asked you about the kind of impact on everything on the budget outlook. is there anything else you wanted to add at this point? >> the thing that i would is add, supervisor, it is early and given the significant, the significant structure issue with the department of public health, that will likely have a more effect on our overal deficit projection than this smaller good news. * overall because that issue is not a -- not only a current year issue.

it's an issue that is structural and is embedded in the department's budget. so, i guess i would say it's modest good news but let's not take our eye off the ball. bigger issues at the department of public health. >> okay, thank you very much. colleagues, any further questions? all right. with that, much appreciated. like to open up item number 11 up to public comment before we continue this. any members of the public wish to comment on item number 11? seeing none, public comment is closed. colleagues, if we could continue item number 11 to the call of the chair. we can do that without opposition. mr. clerk, can you please call item number 12? >> item number 12, hearing to consider and approve proposed board of supervisors budget for fiscal year 2013-2014 and fiscal year 2014-2015. >> thank you. and we have ms. angela [speaker not understood] from our clerk's office.

>> thank you, mr. wrung. -- young. [speaker not understood]. i'm here today with deborah landis, the admin deputy, [speaker not understood] youth commission director and don duran from the sf appeals board. on friday the 30th we presented to the board of supervisors fiscal year 2013-14, 14-15 draft budget based upon the budget instructions this committee provided in december. and today before you is the department's proposed budget which should you approve will be submitted to the mayor and the controller's offices on thursday, february 21st, which will be before you for further consideration in june. since the january 30th hearing, there are no changes to report to our department's budget. as a reminder, the draft budget proposal, the operating budget totals 12.9 million for fiscal year 13-14. i'll put a slide up to show the

public watching at home. and for fiscal year 13-14, 13.2 million dollar budget and for fiscal year 14-15, these are compared to a current year budget of 12.4 million and a base of 13-14 million. we're happy to review the details in-depth. i want to quickly mention one anticipated change for the june presentation. it's been 14 years since we've moved into city hall and naturally we are beginning to see some furnishings and furniture begin to show wear and tear essentially. it should only increase in the next couple of years. operations division provides a deep cleaning service to supervisors when they are moving offices, it does not take care of the wear and tear. [speaker not understood] in city hall will naturally coordinate with building management to understand their plans for maintaining the

building's historic standards. but whether it's in their budget or in our budget, the line item mechanism covering these costs and our needs will have to be identified. at this time we're happy to take any questions that you may have. >> do we have an estimate of what the line item would be for any kind of maintenance like that? >> not at this time, supervisor avalos. certainly as we're working through those issues can provide that to the committee, to all of the supervisors. >> great, thank you. >> you're welcome. >> colleagues, any further questions? okay. at this point like to open up to public comment. are there any members of the public who wish to comment on item number 12? seeing none, public comment is closed. colleagues? >> thank you. we can forward to the mayor's office for consideration for the budget. >> that's correct. >> and i am supportive of actually the youth commission

having the full staffing that we haven't had in a number of years. and i think that all of our offices have really benefited from the great work of the youth commission over the past few years and i think having the flexibility with better staffing would be helpful. >> thank you. >> okay. so, we can make a motion to send this to the mayor's office? >> yes. >> so moved. >> okay. we can do that without opposition. >> thank you. >> thank you very much. mr. clerk, do we have any other items? >> that completes the agenda. >> thank you. we are adjourned. [adjourned]

>> you're watching quick bites, the show that is san francisco. and today you're in for a real treat. oh, my! food inspired by the mediterranean and middle east with a twist so unique you can only find it in one place in san francisco. we're at the 55th annual armenian festival and bizarre. this is extra special not only because i happen to be armenian, but there is so much delicious food here. and i can't wait to share it with all of you. let's go. armenia, culture and cusine has had much cultural exchanges with its neighbors. today armenian food infuses he flavor from the mediterranean, middle east, and eastern europe. >> this is our 55th year and in

san francisco we're the largest armenian food festival and widely recognized as one of the best food festivals in the area. we have vendors that come up from fresno, from los angeles showing off their craft. we really feel like we have something for everyone in the neighborhood and that's really what it is, is drawing people to see a little bit of our culture and experience what we experience weekend in and weekend out. >> we are behind the scenes now watching the chef at work preparing some delicious armenian kabob. this is a staple in armenian cooking, is that right? >> absolutely, since the beginning of time. our soldiers used to skewer it on the swords. we have a combination of beef and lam and parsley. and every september over 2000 pounds of meat being cooked in three days. >> after all that savory protein, i was ready to check out the fresh veggie options. >> this is armenian cheat

sheet. it's tomatos and mint and olive oil. that makes summer food. and what i'm doing is i'm putting some nutmeg. it is kind of like cream cheese. in armenia when they offer you food, you have to eat it. they would welcome you and food is very important for them. >> in every armenian community we feel like we're a "smallville"age and they come together to put on something like this. what i find really interesting about san francisco is the blends of armenia that come together. once they are here, the way people work together at any age, including our grandmothers, our grandfathers, skewering the meat, it's fun to see. fun to see everybody get together. >> we call it subarek. it's a cheese turn over if you want. we make the dough from scratch. we boil it like you do for la san i can't. >> the amount of love and karin

fused in these foods is tremendous. they come in every day to prepare, cook and bake bread, all in preparation for this big festival. >> nobody says no. when you come them, they have to come tomorrow for the feast. >> what a treat it is to taste a delicious recipe, all made from scratch and passed down through generations. it really makes you appreciate the little things. >> it's one of the best festivals. it's outstanding, a marvelous occasion. >> we're outside checking some of the food to go options. i grabbed myself a ka bob sandwich, all kinds of herbs and spices. i'm going to taste this. looking fantastic. one of the best i've had in a long time. you know it's delicious b i have just enough room for dessert, my favorite part. we're behind the scenes right now watching how all the pastries get made. and we've got a whole array of

pastries here. honey and nuts and cinnamon, all kinds of great ingredients. this is amazing. here's another yummy pastry made with filo dough. oh, my god. really sweet and similar, it's lighter. this is what i like. we have a lovely row here. looks like a very delicious and exciting surprise. i'm going to bite into it. here we go. um. this is great with armenian coffee. now we're making some incredible armenian coffee. >> we buy our coffee, they have the best coffee. they come from armenia, specially made.

and would you like to try it? >> i would like to try. >> would you like sugar or no sugar? >> no sugar today. i'm so excited. really earthy. you can really taste the grain. i think that's what makes it so special. really comes out. i hope you try it. we're having a great time at the armenian festival. we ate, we saw, and we definitely conquered. i don't know about you, but i have to go down to the food. check out our blog for so much more at sf bites at tums abler.com. until next time, may the force be with you. ♪ ♪ >> first of all, everybody is welcome and we ask two things when they get here. one, that they try something they've never tried before. be it food or be it dancing or doing something.

and if they feel like it was worth their while to tell one person and bring that person, that family member, that friend down the street to come with them. >> we're going to have to do a lot of eating so get ready. >> get ready. and you diet tomorrow.